Share this on Twitter Share this on Facebook Share this on LinkedIn Share this on Sina Weibo Share this on Wechat Share this on LinkedIn Capital — accumulated money — is like water flowing down a hill. You can divert it but it often just ends up flowing elsewhere. Credit: REUTERS/Brendan McDermid The United States is taking more steps to limit Chinese investment and capital raising in America. Many are claiming this marks the start of a fundamental capital divide between the two nations, part of a broader decoupling of their relationship. Whether or not this proves true is really not about any near-term restrictions. Instead, the real question is: what will become of the massive dollar capital flow from the U.S. to China? To be sure, Washington seems to be cordoning off some Chinese capital flows to the U.S. Total Chinese direct investment totaled a mere $200 million in the first quarter of 2020, about a tenth of the quarterly average last year. This was partly because of the spread of Covid-19, but also due to the stricter national-security restrictions that the U.S. is placing on Chinese investment. The U.S. is also moving to restrict capital inflows between the countries on two fronts in Washington. First, Sen. Marco Rubio has led a chaSubscribe or register to read the rest. Registered users can access a limited amount of content for free.Subscribers get full access to: Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else. A weekly curated reading list on China from David Barboza, Pulitzer Prize-winning former Shanghai correspondent for The New York Times. A daily roundup of China finance, business and economics headlines. We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.